WHIDBEY NEWS-TIMES: Hospital renovation moving forward

Jessie Stensland reports in the Whidbey News-Times that WhidbeyHealth CEO Ron Telles announced that the Public Health District will be proceeding with a hospital renovation project expected to cost $22.5 million. This despite the district’s “cash poor position” — operating with a negative 1.7 days of cash on hand. Mr. Telles indicated that the district had received a loan from the US Department of Agriculture prior to the pandemic.

The plan for the project includes using the “general contractor-construction manager” (GC/CM) process to manage the project. According to the article, “The city of Oak Harbor used this process to construct the sewage treatment plant. The ultimate cost of $150 million far exceeded estimates and elected officials were repeatedly surprised by cost jumps. At one point, Oak Harbor Mayor Bob Severns said he questioned the GC/CM process and its lack of specificity about costs… The city of Seattle has a manual for city departments that outlines the GC/CM process. It points out that GC/CM allows better budget control, value engineering and time savings. Yet the document also stresses the need for staff members to have experience with the complex process; unintended costs could result if the contractor is experienced and staff members are not.”